Monday, October 8, 2012

Chinese telecom firms Huawei and ZTE pose a security threat to the US, a congressional panel has warned after its probe into the two companies.

The two firms should be barred from any mergers and acquisitions in the US, the panel has recommended in its report set to be released later on Monday.

It said the firms had failed to allay fears about their association with the Chinese government and military.

The two are among the world's biggest makers of telecom networking equipment.

"China has the means, opportunity and motive to use telecommunications companies for malicious purposes," the committee said in its report.

"Based on available classified and unclassified information, Huawei and ZTE cannot be trusted to be free of foreign state influence and thus pose a security threat to the United States and to our systems."